Auspine had been locked in a battle with wood supplier Rayonier over its log supply.
But this has now ended, with Rayonier announcing it had reached a 10-year supply deal with another processor, Forest Enterprise Australia (FEA).
Mr Lennon said it was too early to say how significantly Scottsdale would be affected.
Rayonier said it did not have enough resources to supply both FEA and Auspine and so made “the best commercial decision”.
FEA has offered jobs to some sawmill workers from Auspine after winning the supply agreement.
The company said it would be investing A$50m in a new Bell Bay plant, doubling its permanent workforce to 200 in about a year.
